38 



HARDWOOD RECORD 



June 10, 1918 



Busplcious of any manufacturer who has dlscountpcl trndo nrroptnnces 

 which are later dishonored because the goods he shipj"-! '!i-i not rome 

 up to specifications. Indeed, the unscrupulous manul;i. i m ■ i ,vi... i- ..ut 



to swindle his customers, cannot use the trade ac^ , | inlly 



because the banlis with which he does business get on i^i m. ; i.- lie 



can swlmlle all he wants to if he is doing business <lii..i \viih i,i rus- 

 tomers on open book accounts because the banks knuv. m,iliiii(4 .ibout 

 what he is doing. 



The trade acceptance performs another Invaluable function in making 

 available prime commercial paper for short time loans. Banks having 

 funds on hand which are not immefli.Ttrly nfedcd hut whirli can lio re- 

 leased for a certain length of tim.> nm i-ivfii fh.- r,pp.,rtMnii v through 



the trade acceptance, of iii\--ii!i- in h";! iImh 1m:mi ..h i um- 



merclal paper which is baik.. I i -i i:,i.:i. mi i i i, :,.:ii. nhin 



the period desired. Money n ■ i - f. i iii imi ., , i i . un 



call In New York and other . ■ hi. i ^ ir.r i nm.- imi |,.,^, . i„ , .n,-,. rhe 



money can be called at any Inn. .I.>ii..i. Iiii.ii..i i.,u,k.^, 1i..h.wj. ueed 

 no longer send their surplus funds to the larger centers. They can in- 

 vest them right at home and they can get their money back by the time 

 it Is needed. 



The Germans and the English finance 90 per cent ipf fliilr foreign busi- 

 ness by bank acceptances and general use of tivi.l.- M..i].fniices in this 

 country will result in greatly increased use ..t in. i.mi. rs acceptance. 

 1 strongly prefer the trade acceptance and tin i ,, ■ , . ii.ince to cash. 

 And I take this position because we, as maniil:i. in n, i . Minpete with 



foreign interests and the latter know bett.-r iinm :niM:...i\ else in the 

 world how to finance their business by means ..1 i j aile :i. .eptances and 

 bankers acceptances. We must meet this competition and in order to 

 meet It we must follow somewhat the same principles as our competi- 

 tors, notably the French and the English, use. 



Mr. Andrews told the club that the National Credit Men's Association 

 would furnish gladly all detailed Information regarding the trade accep- 

 ance and also advised the members that they could secure a catechism 

 on the trade acceptance for use of their salesmen and for their own in- 

 formation. He declared the trade acceptance neither complicated nor 

 difBcult to understand but be asserted that it brought' about -wide rami- 

 fications and changes in business which required study. He said further : 



Use of the trade acceptance means stoppage of waste of your credit, 

 your resources, your time and your money. 

 your duty to catch step in this gri ' 

 counts liquid. ""'- ' " " "''' - 



the eyes of the world are 



the present crisis 

 novement to make open hook ac- 

 rlch man's war but a poor man's picnic and 



1 us. 



ig every slacker in these 

 neded to win this war. In 

 vor going even a step fu 

 In speak one word of crli 

 "Idlers have for four yc:i 

 iins who are seeking to o\ 



.■s. whe 



tis 



M. B. Cooper, entertainment committee, reported that no special train 

 could be secured to carry the delegation of Memphis lumbermen to the 

 annual of the National Hardwood Lumber Association, June 19, and that 

 special cars could not be obtained unless it were shown that all the space 

 in the Pullmans on the regular trains had been sold. The difficulties 

 being experienced grow out of the tremendous movement of troops, it was 

 explained. 



The house committee reported that employment for fifty-three persons 

 had been found during May by the employment bureau operated under 

 its auspices and that eight c;irs ..f liiii r had been sold across the ex- 

 change board in the club renins 'I In minniittee reported that for the 

 first five months this year cmi.ln.viii.iii had been found for 261 persons 

 and that 33 cars of lumber had been sold. 



J. H. nines, chairman of the law and insurance committee, cautioned all 

 lumbermen to be careful in quoting lumber in view of the proposed ad- 

 vance of 25 per cent in rates effective June 25. 



Mr. HInes told the club that 25 per cent of the capital of members of 

 this organization has been invested in Liberty Bonds and characterized 

 this as a showing that put this organization in the very front rank of 

 business bodies in the United States in the matter of patriotic support 

 of the government. 



Mr. Hines also called attention to the controversy between the firemen 

 of Memphis and the commissioners of this city in which the former aro 

 seeking installation of the double platoon system. He emphasized the 

 fact that, if a strike came, all insurance might be cancelled instanter 

 and he therefore characterized the situation as serious for the lumbermen. 

 R. B. Anderson thought it an emergency in which the lumbermen should 

 take a positive stand and declared : 



Even granting that they are entitled to more pay. this is .in ii"'l'i""" 

 tune time. When everybody is doing more than ever nnimc- in. m.ni n 

 want the double platoon system which means that they wani '"."""'"•; 

 one-half of what they have been doing. The money .an h.' i^' ^';: J'"' 

 labor is extremely scarce and difficult to secure for the lumber industry 

 and for all other Industries. The position of the firemen is wrong in that 

 they want to do only one-halt as much as they have been doing and will 

 strike if they are not able to get what they want. 



Earl Palmer, chairman of the civic committee of the club, reported 

 that prospects were good for a settlement of the controversy and inti- 

 mated In a most modest manner that this pleasing outlook was largely 

 the result of the work done by his committee, which held joint sessions 

 with representatives from other bodies. He did not think it wise to take 

 ■ a stand for or against anybody. He believed rather In encouraging the 

 firemen in every way possible and took it upon himself to assure the lum- 

 bermen that an adjustment would be made which would keep the firemen 

 at work and which would insure just as much fire protection as ever 

 before. The strike has been called oJC until June 15 and developments 

 m the meantime will be watched with much interest by all concerned. 

 R. E. Dickinson, chairman of the river and rail committee, said that 



he and his associates would leave the proposed rate advance to the South- 

 ern Hardwood Traffic Association unless otherwise instructed. 



President McSweyn called for volunteers to go to Washington to aid 

 in. getting increased transportation on the Mississippi. R. E. Dickinson 

 said that he would go some time within the next two weeks. 



T. E. Sledge of May Brothers, Memphis ; W. L. Briscoe of the Thane 

 Lumber Company, Arkansas City, Ark., and Alvin R. Krause, manager of 

 the Memphis branch of Brown Brothers Company, were elected active 

 members. 



It was announced by President McSweyn that this would be the last 

 meeting of the club until next fall unless something developed that re- 

 quired attention. In that event, he said, a meeting would be called and 

 he felt sure that every member would respond promptly. 



Seek Modification of Rate Legislation 



J. H. Townshend. secretary-malinger nf the Southern Hardwood Traffic 

 Association, who return.. I i.-miiI. imm attending the conference of 

 traffic managers an. I ^hi|.|ic i ' \ i: ; May 31, which resulted in the 

 formation of the South. in li ii, i. _ :ii.l that he gathered informa- 



tion emanating from tin- r.-i..nil .|ii.ni,,r- ..fflce for the Southeast that 

 the 25 per cent in freight rates ordered by the railroad administration 

 effective June 25 Is only a starter and that there will be another advance 

 of equal size within the next six months. 



Speaking of the conference itself and of the action of the Southern 

 Traffic League, of which he was elected a director, Mr. Townsend said : 



The league decided to request 



First : That effective date of the new rates be extended until orders 

 taken on existing rates of freight have been filled. 



Second : That the rule providing a minimum of $15 per car be abro- 

 gated, and 



~" ■ ■ That intra-state rates be advanced by no greater percentage 



Thir 

 than inter-state 



A committee from the le 

 of a committee appointed 

 of shippers, and argued ; 

 mittee would take the sul 



tha 



It 



the 



iild 



ippeareil hef.ire Randall Cliftou, chairman 



ir . I..I . ;. m I a I M- \.l.io to hear complaints 



I ! I - He said his com- 



n 11 i . i r It it was his opinion 



i;.u. In iia.i .i I Miniiditee appear at Wash- 

 to meet with the national railway com- 

 >n on that date, to present the matter to 



jresof the order an 



Mr. Townshend is a member of the committee that went to Washington. 



On June 3 he issued a statement to members of the association con- . 

 taining the foregoing information and dealing specifically with the $15 

 per itir niininitini and milling in transit rates. This statement is given 



her.'witli : 



Wi- lia\.' r.-..i\('.l about 100 complaints from members regarding this 

 priipo-r.i iiM i.a-.' in .tirh.a.l niininiiiin ehnrg.- .if i?!."- This Is an especially 

 hifili fit' .11 ir.i- ami lH,:t-' frn- -h'.vt line ti-inl- We urge our members 



to \\ M I ■ 1 I. tin ii iiii'hi ;i I ..! ill.' Toad scrvingthem, 



ami :i: .. I: III I ill. , . ilie regional director, 



(.'hl'a - ;i . I .: ', I I: ■ 1. . are regional director, 



..\tlalil:i :i-liiij Ih.il iIm ..nl.i |ie.\hlliiL: Imi m I ii i in ii In charge of $15 per 

 car la- aniii^ai.-.l all. I iliai 111.- .-half;.- ..n lailis, l.iiis and rough material 

 be based uji the new publisliial net rate plus any increase which may go 

 into effect on June 25. We urge that this be done immediately either by 

 letter or wire. It will also be well to send a copy of your letter to Hon. 

 W. G. McArtoo at Washington. 



Unless modified, the 25 per cent increase will become effective at mid- 

 night on the 24th of June. On all bills of lading bearing that date, 

 regardless of delivery, charges cannot exceed the rates in effect on the 24tb. 



It has not tjeen definitely arranged that advanced net rates will apply 

 as flat rates into milling point. We think we can get this arrangement 

 published, however, if interested members will immediately write to S. H. 

 Johnson, care regional director, Chicago, if west of the Mississippi ; to 

 Randall Clifton, care regional director. Atlanta, if east of the river; to 

 Edward Chambers, director U. S. Railroad Administration^ Washington, 



3) That this will releas.' im. 

 railroads, or, if under iiinti: 

 over any road regardless ..I 

 L. few of our members se.in 

 it nf applying advanced grosi 

 r, Itnin our knowledge of the 

 LI I Unit this will be done. 

 iiMial members of the railr 

 twent.v-five per ce 



dministra 

 B propose 

 nd of the increase, but that additional 

 be asked for within the next six months. 



now tied up in the hands of 

 ■nts, will allow you to ship 

 iginating the raw material, 

 this action might have the 

 he mil! as flat rates. How- 

 do not believe there is any 



-ation at Atlanta indicated 



' on the 25th of June is 



acrease of a like amount 



Important Meeting of Texas Club 



The Southwestern Hardwood Manufacturers' Club held an interesting 

 meeting In Houston May 27 and many important matters bearing on the 

 production and sale of hardwoods in the South were discussed. The 

 meeting was well attended by representatives from both Texas and 

 Louisiana concerns who are probably more deeply interested in what is 

 going on in the hardwood world now than at any previous time in the 

 history of the industry. 



John M. Pritchard. secretary-manager of the American Hardwood 

 Manufacturirs' Association, and F. R. Gadil.of the Hardwood Manufac- 

 turers' Association of the United States, gJive in detail the results of a 

 conference lictween hardwood manufacturers and vehicle manufacturers 

 having large contracts with the government for army escort wagons, held 



